Can I use crowdfunding to raise money without violating securities laws in Utah? What are the requirements?

Requirements for Crowdfunding in Utah

Crowdfunding is a method of raising capital through the internet by soliciting small investments from a large number of people. In Utah, crowdfunding is regulated by the Utah Division of Securities. To use crowdfunding to raise money without violating securities laws in Utah, you must follow the requirements outlined below:

1. Register with the Utah Division of Securities: If you plan to offer securities through crowdfunding, you must register with the Utah Division of Securities. This includes filing a Form U-2 and a Form U-7, which provide information about the issuer and the securities being offered.
2. Limit the amount of money raised: The amount of money that can be raised through crowdfunding in Utah is limited to $5 million per year.
3. Limit the amount of investment: The amount that an individual can invest in a crowdfunding offering is limited to $5,000 per year, unless the investor is an accredited investor.
4. Provide accurate disclosures: Issuers must provide accurate and complete disclosures about the offering, including the risks involved, the intended use of the proceeds, and the financial condition of the issuer.
5. Use a registered crowdfunding portal: Issuers must use a registered crowdfunding portal to offer securities through crowdfunding. The portal must be registered with the Utah Division of Securities and must comply with the requirements of the Utah Crowdfunding Act.

Jurisdiction

Utah

• General